Football clubs consider next move over ITV Digital

Football League clubs would accept a £120 million "golden goodbye" from the ailing television company ITV Digital, it was reported today.

Bradford City chairman Geoffrey Richmond suggested legal proceedings against the company may be dropped if a £120 million "settlement" was offered to First Division clubs.

Speaking on the BBC Radio 4 Today programme, Mr Richmond said legal action was a "last resort" adding that "the majority of Football League clubs" would accept a golden goodbye.

"I very much hope a deal will be done," he said.

"I think legal proceedings are probably the last resort and not the first resort and the feeling among the clubs is that a settlement north of £100 million, a golden goodbye if you like, would be the type of deal we would be interested in.

"A £120 million settlement would be acceptable to the vast majority of Football League clubs."

Many First Division and lower league clubs face an uncertain future after ITV Digital went into administration last week with £179 million owing from its contract.

It has subsequently offered £50 million to clubs for the remaining two years of the deal after struggling financially in the face of an advertising slowdown.

During the programme, Mr Richmond denied claims the Football League would "ditch" lower league clubs when negotiating future television rights.

Mr Richmond said: "There is no question whatsoever about ditching Division Two and Three.

"We are all in it together and will remain so."

A meeting between Football League chiefs and representatives from 24 First Division clubs later today will outline the organisation's legal position and the possibility of action against the TV company.

But Football League chairman David Burns later rejected claims that ITV Digital was preparing to do a deal with clubs.

Mr Burns said ITV Digital's parent companies Carlton and Granada had made "no approach" to clubs and the claims were "intended to put leverage upon the clubs".

He told the Today programme that Carlton and Granada were "seeking to avoid their contractual commitments" by stating they never signed a "long form contract".

"Wiggle out, wriggle out, that is exactly what they are seeking to do and they are using the niceties of the English language and the legal process to put pressure upon the Football League and its clubs to accept less than they are contractually entitled to simply because football clubs have cash flow issues."

Football League and club chiefs are set to meet later today to discuss what action will be taken against ITV Digital, but Mr Burns said they have "a strong legal case".

He added: "No-one is going to be foolish enough not to look to compromise if there is a deal to be made and we are open to any offers that are made as long as they are sensible and reflective of the contractual agreements with Carlton and Granada."